A Particular Conseq...
 
Notifications
Clear all

A Particular Consequence of Inflation

1 Posts
1 Users
0 Reactions
171 Views
Avatar Of Island Bucs
Posts: 589
Topic starter
(@island-bucs)
First Mate
Joined: 55 years ago

At 5% inflation:

The buying power of a dollar goes to 50 cents in 15 years,

and in 30 yrs at 5% inflation, a dollar goes to a quarter.

This is particularly tough in an investment that has a set payout in the future,
like a life insurance policy.

A $100,000 face value Life insurance policy
will drop to $25000 purchasing power in 30 years at 5% inflation.

Share: